How Does Amazon Work?

Amazon is today one of the world’s largest online sales platforms and its founder Jeff Boz has stated the goal that the customer should be able to buy just about anything via the platform. Last year, the company had sales of almost $ 178 billion.

As an e-merchant, it is good to know how Amazon works. This blog post summarizes the basics of how to sell on Amazon.

Amazon marketplace

If you haven’t heard of Amazon Marketplace, it’s time to tip your ears. At Amazon Marketplace you will find all the world’s products from all the world’s companies.

This is also true of private individuals and both new and used. Just as Google finds the information you are looking for, Amazon is a search engine focused on products and sales. It can therefore briefly be described as a search engine for those who want to shop online.

You don’t need a webshop to sell on Amazon, you simply register an account on the platform. The monthly fee depends on how many products you intend to sell per month plus Amazon will always charge a small commission on the price of the product on sale. You manage your products and your sales through Amazon’s Seller Central. There you can easily add product descriptions, update inventory status and handle payments.

It is also possible to send parts or all of their stock to Amazon (FBA – Fulfillment by Amazon) and use them as a 3PL (third party logistics). Then Amazon will handle everything from sales to transportation and returns. With this full-service service, you get to Amazon’s cruel logistics that have become known around the world for its punctuality and innovative transportation methods such as drones or delivery within one (1) hour.

Amazon Prime

Prime is a customer club that gives you access to a large number of membership benefits.

Membership means, among other things, that you receive free shipping within two days on virtually all goods shipped via Amazon. You get access to Prime Photos (free space to upload your photos) and Prime Video (stream well-known TV series and movies like Netflix) and these are just some of the benefits. Amazon Prime currently has over 100 million subscribers worldwide.

Advertise on Amazon

Sponsored Products

Of course, Amazon offers ads on its platform. These ads are similar to Google Ads. There are different types of ads where the most common are sponsored products that come up in the results when doing a search.

Product Advertisement

As an advertiser, you can also show your ads on a product page or as a recommended product at the bottom of the footer.

Headline Search Ads (HSA)

At the top of the search result there is an ad space like a banner where you as an advertiser have the opportunity to expose up to three (3) products with the opportunity to link to a unique landing page. These ads are called Headline Search Ads and are the most expensive ad space on Amazon.


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